All good points, and worth thinking about, as we all do. I don't have the answer, and guess what, the ruby market won't be telling us anytime soon!!
Hence, the impasse, for the market.
Not all I have said below relates to your comment, so should be considered as a general post as well.
I guess we need to look again at the only measure we have, that is Gemfield's several auction announcements, and their Ruby JORC, to understand what MUS's results might be.
That info is floating around on the postings, I think lutin25 presented the basics from the GEM JORC again tonight, which does indicate some base public information, and interesting the average percentages of what is recovered from a 'secondary' deposit. Additionally, from GEM their expected average price per carat in GEM's grading system, over a number of years.
I suggest some of you do some basic maths and look at the potential quality mix.
I could probably reverse engineer their last auction, given their price basics, to give you the break up of what was sold at what price, but it takes time. Wombat's estimates are pretty damn close, and I am not here to prove anything, but I know it can be done, if needed.
The question I guess is do MUS have a better 'secondary' resource, and very possible, or even the same, so everyone should do the numbers on the GEM's JORC recovery on their 'secondary' deposit, and many will be surprised on what MUS might achieve, with their delivery of carats to auction just from 'secondary' deposits
However, to keep everyone grounded, and given the carats potentially delivered at auction, and as we don't know the mix of quality, anything above an average price of $60 per carat, is IMO a win, for many reasons.
Surely, the market can see this much potential? I personally have other thoughts, which are not relevant.
Will be interesting to see what happens.
Cheers
gsmaree
MUS Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
